Published on: 1 April 2020

Deficit as a proportion of GDP was 2.0% in 2019

According to preliminary data the deficit of the general government sector in 2019 was HUF 958 billion, 2.0% of GDP. The balance improved by 0.1 percentage points as a proportion of GDP compared to 2018.

HCSO reported the data to Eurostat, the Statistical Office of the EU, in compliance with the regulation on Excessive Deficit Procedure (EDP), according to the methodological requirements included in the European System of Accounts (ESA 2010). The deficit of the general government sector was HUF 958 billion representing 2.0% of GDP. The debt of the general government sector at the end of 2019 – based on data of the National Bank of Hungary – was HUF 31,040 billion, 66.3% of GDP.

In 2019 compared to 2018:

The general government sector’s revenues were HUF 20,588 billion and its expenditures HUF 21,546 billion.

Revenues went up by HUF 1,594 billion or by 8.4%. The largest, HUF 677 billion (8.6%) increase in value was recorded in taxes on production, within which VAT revenue growth was HUF 397 billion (9.6%). Revenues from taxes on income were HUF 291 billion (10.2%) higher than a year earlier. Social contributions rose by HUF 334 billion (by 6.4%). Other revenues increased by 292 billion (by 9.5%).

Expenditures increased by HUF 1,635 billion or by 8.2%. The growth in case of gross fixed capital formation was HUF 305 billion (12.2%), regarding intermediate consumption it was HUF 396 billion (11.6%). Paid compensation of employees went up by HUF 255 billion (by 5.6%) and social benefits other than social transfers in kind increased by HUF 228 billion (by 4.7%). Interest expenditures grew by HUF 50 billion (by 4.9%) and other general government sector expenditures went up by HUF 402 billion (11.3%).

In the 4th quarter of 2019 compared to the same period of 2018:

The general government sector had a deficit of HUF 764 billion: 6.3% of GDP. The balance worsened by HUF 108 billion or by 0.4 percentage points year-on-year.

Revenues increased by HUF 512 billion (by 9.8%).

Expenditures were HUF 620 billion (10.6%) higher than a year earlier.

EDP notification of Hungary